Amazon to acquire Whole Foods for $13.7 billion
SEATTLE, WA AND AUSTIN, TX, USA – Online retail giant Amazon today announced the purchase of Whole Foods Market at $42 a share in an all-cash transaction valued at approximately $13.7 billion.
‘Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,’ said Jeff Bezos, Amazon Founder and CEO. ‘Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue.’
The supermarket will continue business under the Whole Foods brand and remain headquartered in Austin Texas, where John Mackey will stay on as CEO.
Whole Foods currently operates 460 stores in US, Canada and UK, where they sell own brand coffee Allegro. The acquisition could provide an opportunity for a wider distribution of Allegro coffee under the Amazon channels.
‘This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,’ Mackey said.
The move marks Amazon’s biggest push into physical retail stores yet. Last year the company announced plans to rollout out the high tech convenience store concept Amazon Go in Seattle in late 2017. The checkout free store boats ‘just walk out technology’ that automatically detects when items are taken and returned to shelves and keeps track of them in a virtual cart.